Cost of acquisition for calculation of capital gain

Tax queries 868 views 6 replies

What all items can be included as cost of acquisition of flat while calculating capital gain? There are

1. Charges which were part of purchase agreement like Maintenance security deposit

2. Charges which were not earlier part of agreement but later charged like Electric Connection charges, Electric connection security deposit, annual maintenance charges etc.

Kindly suggest if both type of charges can be included in cost of acquisition. Both needed to be compulsorily paid to get possession of the flat.

Replies (6)

In my opinion, the security deposit will not be part of COA because they are refundable in nature. 

Further, AMC and eletricity connection charges are revenue expenses that cannot be added to COA. 

 

First was added to cost except deposit while other charges in second point are not part of cost

Can interest paid on home loan be added to cost of acquisition?

Only if belongs to pre construction period

It seems indexation can be done from the year when allotment letter is issued. What should be year of indexation for payments made after the year of allotment.

Date of allotment is considered for all paymnts


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